LUNA’s Collapse Exposed: Is FTX the Mastermind Behind the Chaos?

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Former Binance CEO Changpeng Zhao (CZ) has hinted at some exciting details about his upcoming book, revealing that he contemplated a possible connection between FTX, Three Arrows Capital (3AC), and the infamous Terra (LUNA) crash of 2022. Though he refrained from making direct accusations, his comments have started a new speculation about the events that shook the crypto market.

Did FTX Play a Role in the LUNA Collapse?

CZ responded to a post by an FTX creditor, @Mbottjer, who revealed that 3AC had recently outbusted proofs indicating that FTX had liquidated $1.53 billion worth of its assets just two weeks before 3AC collapsed. The claim, which has been approved by a judge, adds another layer to the complex web of crypto failures that rocked the industry.

CZ called this an “interesting turn of events” and admitted it was news to him. He then questioned whether there was a link between FTX and the collapse of Terraform Labs’ LUNA token and UST stablecoin in May 2022. That crash sent shockwaves through the market, dragging down Bitcoin and other cryptocurrencies.

Was it Planned?

In response to CZ’s remarks, Crypto analyst MartyParty stated that he had already revealed on-chain evidence showing Celsius and FTX withdrawing massive amounts of UST from the liquidity pool at the exact moment the market was vulnerable. According to him, both firms executed $200 million UST withdrawals, triggering the stablecoin’s depeg and ultimately causing the LUNA meltdown.

His statement adds weight to theories that powerful players in the crypto space may have intentionally orchestrated the collapse. If true, it would mean the 2022 market crash wasn’t just a result of bad risk management but a coordinated attack.

CZ’s Book Will Address These Controversies—But With Caution

A user on X suggested that the entire FTX scoop deserved a documentary series, to which CZ responded that he had thought about this connection while writing his book. However, he made it clear that he found no concrete evidence, saying, “I didn’t want to speculate; there were rumors, but I never saw hard evidence.”

CZ has already completed a 114,000-word draft of his book and has printed a physical copy. However, he believes it will take three times the effort to refine it before it’s ready for publication. Given the controversies surrounding FTX, 3AC, and Binance itself, the book could provide an insider’s perspective on the crypto industry’s most chaotic years.

What’s Next for CZ’s Book?

With the crypto world still recovering from the aftermath of the 2022 crashes, CZ’s book is expected to shed light on key industry events from his point of view. Whether it will contain major revelations or remain a personal reflection, the anticipation is growing. For now, CZ remains careful with his words, ensuring that his account sticks to facts rather than speculation.